By Kiara Doyal, The Seattle Medium
In spring 2023, the Washington State Legislature passed the Covenant Homeownership Act, establishing a program to help people historically excluded from wealth-building opportunities through homeownership. This landmark legislation, spearheaded by Representative Jamila Taylor and Senator John Lovick, created the Covenant Homeownership Program (CHP), which provides financial assistance to first-time homebuyers who are descendants of those impacted by discriminatory housing practices before 1968.
According to Linda Taylor, Vice President of Housing and Financial Empowerment at the Urban League of Metropolitan Seattle (ULMS), the program offers down payment and closing cost assistance through a 0% interest loan, repayable upon the sale or refinancing of the home. Its mission is to make homeownership more accessible and equitable, addressing systemic barriers that have long prevented marginalized communities from building generational wealth.
“The program is up to a $150,000 down payment or 20%, whichever is greater, or whichever is needed,” Taylor explained. “If you or your family has been living in the State of Washington before 1968, then you may qualify for the program.”
Proving Seattle residency is a critical eligibility requirement for the program, and ULMS is prepared to assist applicants in documenting their history.
“The number one way is to provide your birth certificate or your parent’s birth certificate,” Taylor said. “If you or your parents went to high school in Washington State, then that would be the second-best way to prove your residency. It could also be your grandparent’s information, church records, and death records. There is just a whole plethora of things on the internet that can help someone qualify for the program.”
For those who do not meet the residency requirements, ULMS has introduced a supplemental program that provides financial assistance for those who don’t qualify for the program.
“We got quite a bit of money [to help perspective homeowners],” says Taylor. “We can do $100,000 on top of whatever you need if that need isn’t met or if you don’t qualify, which a lot of people don’t because they weren’t here before 1968.”
All applicants seeking assistance through ULMS must attend a mandatory homebuyer education class.
“We have a homebuyer class every second, third, and fourth Saturday of the month. It is a five-hour class that is mandatory to receive any of this money,” Taylor explained. “The class is for everybody. All you have to do is call the Urban League or go on our website under Home Ownership and register for the class.”
Many Seattle residents struggle with housing and ways to go about purchasing a home for the first time, or in general. Taylor said that she has been working with the homeownership curriculum for 30 years and believes that there is no better time to purchase a home than now, particularly for the younger generations.
“There is no right age to purchase a home. When you are 18 and can sign a contract, then you are ready,” she said. “These young people are paying around $3,000 a month when they could live in a home that they own for the same price or less. The difference between renting and owning is that at the end of the year, you are taking the tax deduction, you have the opportunity to sell, and you have some equity.”
“This is the time to buy. There is not going to be a better time,” she added. “These are the best of times at this moment because who knows what tomorrow is going to bring.”
Taylor, who acknowledges that homeownership can be a daunting journey, says that ULMS is committed to supporting buyers, especially young buyers, through every step of the process.
“Getting younger generations interested in buying a home is important so they can pass down generational wealth,” Taylor said. “Homeownership is difficult and it is not easy, but we are here to walk you through it. I was at a seminar once where they said death, divorce, and mortgage are on the same stress level. So it is difficult, but I have done it several times because it is important.”
Beyond homeownership assistance, ULMS also offers programs to address business development and home repairs for seniors and veterans.
“With some of the money that we have gotten from the state, we are doing a business development program, senior and veterans home repair, and working with a couple of banks to come up with a good down payment assistance program,” Taylor said.
For seniors and veterans, the program funds home repairs to ensure properties are safe and habitable.
“The money going towards seniors and veterans is to help them fix up their home and keep their home in a safe and sanitary condition, and we will be doing home inspections prior to all work,” she added.
To address barriers like debt and poor credit scores, ULMS is also planning a new debt reduction program.
“We haven’t signed the contract yet, but part of it will be that I am insisting there will be a debt reduction program where we will help pay off some of your debt,” Taylor explained. “Right now, it is up to $50,000, and that will help raise your credit score so you can buy a house. The goal is to have you put down more than 20% to avoid mortgage insurance.”
Taylor underscored ULMS’s commitment to helping homeowners “obtain, maintain, and retain” their homes. For those facing foreclosure or financial hardship, federal and state programs like the Homeownership Assistance Fund (HAF) offer vital resources.
“HAF will pay up to $60,000 to help you with back mortgage payments,” Taylor said. “The keyword is back mortgage payments. People come to us all the time saying they are going to lose their job and won’t be able to pay, but we can’t help unless we get a statement from your mortgage company saying you are delinquent.”
ULMS also offers mediation services to help homeowners negotiate with lenders to avoid foreclosure.
In partnership with Healthy Smart Homes, ULMS conducts outreach to educate the community about its programs.
“On November 16, we had a covenant information session at New Hope Church to share information on the program, and if your church is looking to have one, I will set that up,” Taylor said.
To get more people familiar with these programs and how to use them, the ULMS will be hosting an upcoming info session for real estate or mortgage professionals on December 13 at the Northwest African American Museum. Registration is required.
“In partnership with Healthy Smart Homes, we are producing ambassadors, and they are doing the majority of the outreach,” Taylor said. “At the Urban League, we provide the counseling with our HUD-certified counselors, and that is a distinction that sets us apart from every other counselor in the state.”